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Taiwan Banchiao District Court Held Everlight Liable for Damage Compensation

October 17, 2007- Nichia Corporation ("Nichia") announced today that Taiwan Banchiao District Court just rendered its judgment on 16 October 2007, holding that certain LED products supplied by Everlight Electronic Co., Ltd. (hereinafter referred to as "Everlight"), including Model Nos. 99-215UWC/TR8, 99-115UWC/XXX/TR8 and 99-115UTC/710/TR8, have infringed upon Taiwanese Design Patent No. 089036 owned by Nichia Corporation, and as a consequence, Everlight and its statutory representative shall jointly pay a damage compensation in an amount of NT$80 million (around US$2.5 million) to Nichia. Nichia filed a lawsuit with a damage claim against Everlight in 2006 (Taiwan Banchiao District Court Case No. 2006-Chongchi-3), and finally was granted such a favorable judgment.(April 26, 2006 press release)

The above judicial judgment has evidenced the justifiability of Nichia's action for patent enforcement. Nichia will continue taking proper measures over the world so as to protect and ensure its intellectual property rights.

The design patent concerned in the above judicial judgment relates to an LED product used in mobile equipments such as cellular phones as the backlight source of the LCD panel. Nichia owns a number of foreign counterpart patents in other countries as well. Nichia is enforcing the U.S. counterparts against Seoul Semiconductor Co., Ltd., a Korean company, and the case is currently pending before the United States District Court for the Northern District of California. (January 16, 2006 press release, November 27, 2006 press release)